Posted at 17 November 2022 / Categories Market Roundups
Market Roundup:
•US Continuing Jobless Claims 1,507K, 1,500K forecast, 1,493K previous
•US Jobless Claims 4-Week Avg 221.00K,218.75K previous
•US Initial Jobless Claims 222K, 225K forecast, 225K previous
•US Nov Philly Fed Employment 7.1, 28.5 previous
•US Oct Housing Starts (MoM) -4.2%, -8.1% previous
•US Nov Philadelphia Fed Manufacturing Index -19.4,-6.2 forecast, -8.7 previous
•US Oct Building Permits (MoM) -2.4% ,1.4% previous
•US Building Permits 1.526M, 1.512M forecast, 1.564M previous
•US Oct Housing Starts 1.425M , 1.410M forecast, 1.439M previous
•US Nov Philly Fed Prices Paid 35.30,36.30 previous
•US Natural Gas Storage64B, 63B forecast, 79B previous
•US Nov KC Fed Composite Index -6, -7 previous
•US Nov KC Fed Manufacturing Index -10,-22 previous
Looking Ahead - Economic Data (GMT )
•No significant events
Looking Ahead - Events, Other Releases (GMT)
•23:30 Japan Oct National Core CPI (YoY)3.5 forecast, 3.0% previous
•23:30 Japan National CPI (MoM) 0.3% previous
Currency Summaries
EUR/USD: The euro initially gained on Thursday but gave up ground as investors digested mixed U.S. economic data he greenback has tumbled in recent weeks as inflation data and comments from Federal Reserve officials have suggested that the central bank can soon slow the pace of its punishing interest rate hikes. Yet the dollar rose on Thursday after U.S. retail sales data for October, released on Wednesday, came in stronger than expected. The euro was up 0.06% against the dollar at $1.036, after hitting its highest level since July at $1.048 on Tuesday. Immediate resistance can be seen at 1.0392(23.6%fib), an upside break can trigger rise towards 1.0435(Higher BB).On the downside, immediate support is seen at 1.0328 (Daily low), a break below could take the pair towards 1.0232(38.2%fib).
GBP/USD: The pound eased against the dollar on Thursday ahead of finance minister Jeremy Hunt's new budget full of tough but necessary measures to control inflation.Hunt, who took over from Kwasi Kwarteng who served as chancellor under former Prime Minister Liz Truss, plans to tackle a 55 billion-pound ($65.7 billion) hole in Britain's budget by freezing thresholds and allowances on income tax, national insurance, inheritance tax and pensions for a further two years.Inflation in the UK shot up at a rate of 11.1% in the year to October, the fastest increase since October 1981 and well above September's 10.1% rate. Sterling was last down 0.3% against the dollar at $1.1847. Immediate resistance can be seen at 1.1895 (23.6%fib), an upside break can trigger rise towards 1.2021(Higher BB).On the downside, immediate support is seen at 1.1856(9DMA), a break below could take the pair towards 1.1672(38.2%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, the only G10 currency not to lose ground against the greenback, as Wall Street rebounded from its worst levels of the day. The S&P 500 clawed back some of its decline after it was pressured earlier in the day by hawkish comments from a U.S. Federal Reserve official and data showing the labor market remained tight.The U.S. dollar rose against a basket of major currencies and U.S. Treasury yields climbed as investors evaluated how high the Fed will raise interest rates.The loonie was trading nearly unchanged at 1.3325 to the U.S. dollar, after moving in a range of 1.3306 to 1.3401. On Tuesday, it touched an eight-week high at 1.3225. .Immediate resistance can be seen at 1.3350 (5DMA), an upside break can trigger rise towards 1.3393 (61.8% fib).On the downside, immediate support is seen at 1.3288(5DMA), a break below could take the pair towards 1.3288 (50%fib).
USD/JPY: The dollar strengthened against the yen on Thursday as the dollar rebounded on data conflicting with a narrative of retreating U.S. inflation leading to slower interest rate hikes. U.S. October retail sales rose 1.3%, compared with economists' expectations for 1.0%, a healthy signal but one that dented hopes that the Federal Reserve would scale back rate hikes. Focus remained on Fed’s interest rate strategy, with traders pricing in a 93% probability of a 50 basis-point of rate hike at the U.S. central bank’s December meeting. Traders will also scrutinise speeches from numerous Fed officials on Thursday for hints about rate hikes. Regional Fed Presidents Raphael Bostic, Loretta Mester and Neel Kashkari are all due to speak. Strong resistance can be seen at 140.29(38.2%fib), an upside break can trigger rise towards 140.68(Nov 14th high).On the downside, immediate support is seen at 139.00(Daily low), a break below could take the pair towards 137.88(23.6%fib).
Equities Recap
European stocks closed lower on Thursday with investors closely following the developments on the geopolitical front, and digesting the budget announcement by the British Finance Minister Jeremy Hunt.
UK's benchmark FTSE 100 closed down by 0.06 percent, Germany's Dax ended upn by 0.23 percent, France’s CAC finished the day down by 0.47 percent.
Wall Street's main indexes ended modestly lower on Thursday in a choppy session as hawkish comments from a U.S. Federal Reserve official and data showing the labor market remained tight led some investors to worry about more aggressive interest rate hikes.
Dow Jones closed down by 0.02 % percent, S&P 500 closed down by 0.32% percent, Nasdaq settled down by 36.2% percent.
Commodities Recap
Gold prices retreated 1% on Thursday as the dollar bounced, while recent comments from U.S. Federal Reserve officials signalled continuing policy tightening to tame inflation.
Spot gold fell 0.8% to $1,760.43 per ounce by 1:50 p.m. ET (1850 GMT), after falling to $1,753.6 earlier in the session. U.S. gold futures settled down 0.7% to $1,763.
Oil prices fell more than 3% on Thursday, with demand squeezed by mounting COVID-19 cases in China and fears of more aggressive hikes in U.S. interest rates.
Brent crude fell $3.08 to settle at $89.78 a barrel, down 3.3%. U.S. West Texas Intermediate (WTI) crude slid $3.95, or 4.6%, to settle at $81.64 per barrel.